PFA Pioneer Blog

Another way to export corn

Mar 09, 2012

Pro Farmer Extra

- From the Editors of Pro Farmer newsletter

Another way to export corn

March 9, 2012

This winter I've been impressed by row-crop-only producers' interest in the livestock, poultry and dairy markets. It seems the message to "support our biggest consumer" message has gotten through loud and clear. In reality, the feed market took a year off from being the biggest consumer of corn, but USDA says Feed & Residual use will once again top the list of corn-users in the 2012-13 marketing year at a projected 5.2 billion bushels.

But we are producing more beef and pork in the U.S. than we can consume. Pork exports in 2011 were a record at nearly 500 million pounds. That was up from just over 400 million lbs. in 2010. The U.S. Meat Export Federation says pork exports account for $55.55 of the value of each pork carcass. Pretty impressive stuff!

On the beef side, 2011 exports were a record of about 284 million pounds. The USMEF says those exports account for about $206 of every beef carcass. WOW! The good news is beef exports will go through a "development year" in 2012 as U.S. trade reps negotiate with Japan and other Asian markets to reopen those markets to beef from animals 30-months-old and younger. Right now, most Asian markets take beef from animals only 20-months and younger. If successful with that process this year, we'll have back about 95% of the market that was lost when BSE was found in the U.S. in 2003. (It might take 10 years, but we'll get it back!)

The bottom line on beef, pork and poultry exports is that it's just another way for the U.S. to export corn and soybeans... a value-added product for the feed we grow here.

Friday's USDA Supply & Demand Report included export estimates for corn of 1.7 billion bu., down from 1.835 billion bu. last year and 1.98 billion bu. the year before that. Soybean exports are estimated at 1.275 billion bu., down from about 1.501 billion bu. the past two years.

But... some of that cut in export demand for corn and soybeans has been offset by bigger exports of beef and pork in 2011 and an outlook for another strong year of redmeat exports in 2012.